Nigeria’s Minimum Wage Rose in Naira but Lost Value in Dollars

Nigeria’s minimum wage has increased repeatedly since 1999, but the naira’s depreciation has reduced its value when measured in dollars. In 2000, the ₦5,500 minimum wage was worth about $54. It rose to ₦18,000 in 2011, or roughly $117, before reaching ₦30,000 in 2019, worth about $98. By 2024, the new ₦70,000 minimum wage was valued at about $45 at the prevailing exchange rate. Between 2011 and 2024, the wage rose by almost 289% in naira terms, yet its dollar value fell by more than 60%. This does not by itself measure local purchasing power, but it shows how currency depreciation can weaken the international value of workers’ earnings. The debate should therefore go beyond the size of a wage increase. Workers also need wages that can keep pace with inflation, exchange-rate pressure and the rising cost of living.

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